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Sovereign Gold Bond scheme 2020-21 series VIII: Gold bond issue price fixed at Rs 5,177 per gm

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MUMBAI: The concern value for the Sovereign Gold Bond has been mounted at Rs 5,177 per gram of gold, the Reserve Bank of India stated in a press release on Friday (November 7). The Sovereign Gold Bond Scheme 2020-21-Series VIII shall be opened for subscription from November 9-13, 2020.

“The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity. Works out to Rs 5,177 per gram of gold,” the RBI stated.

It additional stated the federal government, in session with the RBI, has determined to supply a reduction of Rs 50 per gram lower than the nominal worth to these traders making use of on-line and the fee towards the appliance is made via digital mode. “For such investors, the issue price of Gold Bond will be Rs 5,127 per gram of gold,” the central financial institution stated.

The concern value for the bonds (Series VII), which was open for subscription from October 12-16, was Rs 5,051 per gram of gold.

Sovereign Gold Bond 2020-21 is issued by Reserve Bank India on behalf of the federal government of India.

The bonds are denominated in multiples of gram(s) of gold with a primary unit of 1 gram and the tenor of the SGB shall be eight years with exit possibility after the fifth yr to be exercised on the curiosity fee dates.

The bonds are restricted on the market to resident people, HUFs, Trusts, Universities and Charitable Institutions.

The minimal permissible funding shall be 1 gram of gold and the utmost restrict of subscription shall be 4 kg for people, 4 Kg for HUF and 20 Kg for trusts and related entities per fiscal (April-March).

The gold bond shall be bought via banks (besides Small Finance Banks and Payment Banks), Stock Holding Corporation of India (SHCIL), designated submit workplaces, and recognised inventory exchanges (NSE and BSE).

The sovereign gold bond scheme was launched in November 2015 with an goal to cut back the demand for bodily gold and shift part of the home financial savings — used for the acquisition of gold — into monetary financial savings.

As per the RBI Annual Report 2019-20, a complete of Rs 9,652.78 crore (30.98 tonnes) has been raised via the Sovereign Gold Bonds Scheme (37 tranches) since its inception in November 2015. The RBI issued 10 tranches of Sovereign Gold Bonds (SGBs) for an combination quantity of Rs 2,316.37 crore (6.13 tonnes) throughout 2019-20.

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